The RED III proposal: a 40% RES target in 2030 and new rules for biogas, hydrogen and biomass

On 14 July 2021 the European Commission proposed amending the Renewable Energy Directive (RED II), i.e. the draft known for short as RED III (COM(2021) 557). The most important change: a binding 40% share of RES in gross final energy consumption in the EU in 2030, instead of the current 32%. The proposal also changes the sectoral targets and the rules on biomass, biogas and hydrogen.

Key proposals

Tightening of the sustainability and emission reduction criteria for bioenergy, in particular for forest biomass, and a limit on support for the burning of high-quality wood were also proposed.

What it means for biogas and biomethane

In the Commission's approach, biogas and biomethane from waste and residues (listed in Annex IX) are to play a complementary role to electrification. The value of the sub-target for advanced biofuels and biogas in transport (2.2%) and the way it is calculated differ from RED II, where 3.5% was set for 2030, so the two figures should not be compared directly. The proposal does, however, strengthen the role of RFNBO, i.e. hydrogen and synthetic fuels, which may compete with biomethane in some applications.

The proposal also contains changes concerning guarantees of origin and the integration of energy systems. For biomethane producers, the provisions on grid connection and on fuel certification, which are meant to facilitate cross-border trade, are important.

Significance for Poland

Raising the target to 40% requires Poland to develop RES much faster than assumed by Poland's Energy Policy to 2040 (23% in 2030). For agriculture and waste management, the targets in heating and transport are important, where biogas can complement other technologies. Tightening the criteria for forest biomass would mean the need for changes in wood burning in Polish power plants.

What next

The proposal required agreement in the European Parliament and the Council. The biogas industry announced it would lobby for a higher sub-target for biogas and biomethane and for clear grid connection rules. The value of the final targets was to depend on the negotiations.